Hello, welcome to the website. My name isXXXXX can assist you with this.
The first thing you should do here is inform your insurance company, if you haven't already.
Then, they will liaise with him directly or appoint one of the panel solicitors to deal with this for you.
But, the legal position is pretty simple.
A driver owes a duty of care to pedestrians/other road users not to cause them unnecessary harm.
He will argue you breached that duty.
However, you will say you properly discharged that duty, because he came out into your path.
If you acted reasonably and could't stop etc., then this is not likely to be your fault.
He should have made sure he didn't step out to an oncoming car.
Do we need to go to the police or is that up to him?
No, if he is not hurt, I don't think you need to worry about involving the police. If he wants to do that, he can do that, but it's really likely to be a civil matter only by the sounds of it.
I don't think you need to worry about this - just inform your insurer and they will do the rest for you.
Will he get the compensation i.e. wages he is asking for through the insurance? Its all he wants from me.
He would do, yes, if the insurance believed you were in the wrong, or alternatively, if they just wanted to do a deal and pay him off. I expect they would make him an offer if it's not a lot - it's often not commercially viable to fight these things.